Since the beginning of the year, the currency pair lost over 1.5% and last week fell more than 1.0% but remains in a bearish phase since late December 2017.
Last week the USDCAD fell with a wide range and closed near the low of the week, in addition the currency pair managed to close below the previous week low, which suggests a strong bearish momentum.
The stochastic is showing an oversold market although is still displaying bearish momentum.
The currency pair broke below 1.2460 the 2016 low and is now pointing toward 1.2061 the 2017 low. Trading below all three 10, 50 and 200-week moving averages that should provide dynamic resistances.
Expecting a downward move to a weekly support at 1.2086 on a break below the previous week low at 1.2281 (scenario 1) although a bounce from the weekly support at 1.2086 could set in motion another upward move to 2016 low at 1.2061 (scenario 2).